Oil prices have surged to new highs as tensions escalate over Donald Trump’s war in Iran.
Brent crude oil surged to a four-year high Thursday after reports that the president will be briefed on new military options for possible action in Iran, raising concerns over fresh escalation in the Middle East.
The global benchmark jumped as much as 7.1 percent to above $126 a barrel—its highest level since the aftermath of Russia’s invasion of Ukraine in 2022—before easing to trade near $122, Bloomberg reported.
It comes as tensions between the United States and Iran are intensifying, with Trump expected to hold urgent talks with senior military commanders, raising speculation about potential new strikes on Iranian targets, Axios reported.
According to three sources, U.S. Central Command (CENTCOM) has drawn up plans for a “short and powerful” wave of attacks that would include infrastructure targets. Trump has previously warned he could strike Iranian infrastructure if negotiations collapse, despite warnings that might constitute a war crime.
Separately, U.S. commanders have reportedly requested deployment of the Army’s long-range Dark Eagle hypersonic missile system to the region. If approved, the deployment would mark its first operational use. The weapon is said to have a range of more than 1,700 miles and can travel at hypersonic speeds.
The developments come as diplomatic efforts remain stalled despite a fragile ceasefire in place since early April. Talks have largely broken down over U.S. demands that Iran abandon its nuclear program, which Tehran has refused to do.
At the same time, the Strait of Hormuz remains closed off, choking a key global shipping route and ratcheting up pressure on already strained energy supplies.
The vital route has been effectively shut since the conflict began at the end of February, with both the U.S. and Iran maintaining restrictions that have sharply reduced maritime traffic to near zero. The disruption has cut off major flows of crude oil, natural gas, and refined products, pushing global energy prices higher.
As a result, oil and gas prices have spiked. And the financial strain is increasingly visible in American households, with polling showing that over half of Americans feel their financial situation is getting worse.
But Trump has indicated he will not lift restrictions on Iranian ports until a nuclear deal is reached, despite continued defiance from Tehran.
Analysts say prolonged stalemate in the Strait of Hormuz dispute is likely to push oil prices higher, as markets remain uncertain about when the key shipping route could reopen.
“Somehow, another few weeks of stalemate does not look like something that will sit well with Trump,” Vandana Hari, founder of analysis firm Vanda Insights, told Bloomberg. “Prices have nowhere to go but up until a Strait of Hormuz reopening comes into line of sight. As of now, how and when that might happen is anybody’s guess.”
